U.S. health care systems are expected to see an annual loss rate of $0.79 per $100 of payroll for workers' compensation claims in 2013, and claim severity, including medical, indemnity and expense costs, is estimated to rise by 2 percent per year, according to a new survey by Aon Risk Solutions.
The survey also finds loss rates are projected to grow 1 percent annually, and the stability in workers' comp loss rates is attributed to the decline in claims frequency. Factors likely causing this decrease are the health care industry's focus on patient safety, which trickles down to worker safety; the use of new technology and nursing staff turnover.
Risk managers are most worried about patient handling, considering that related claims make up 25 percent of all health care workers' compensation claim payments, the survey finds. Patient handling also experiences the highest average indemnity payment. Among the other major concerns for risk managers are absence management, managing costs and an aging work force.
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"It is interesting to note that employee turnover is at the bottom of our report's list," says Greg Larcher, regional director and actuary with the actuarial & analytics group within Aon Global Risk Consulting. "The economic condition of the last several years has dramatically changed the employment landscape for nurses. Part-time nurses are working full time, and nurses that left the profession for other industries are coming back to nursing. The bright side for health care providers is that they are now able to select the best and brightest to join their staff."
With more registered nurses, health care systems don't have to put as much reliance on unlicensed workers. Although employee turnover is not a priority, the transition in the overall experience and competency of nurses are important when it comes to workers' comp results.
"Our experts were also surprised to find that two-thirds of survey respondents either do not have a return-to work-program or do not have any way to test the effectiveness of their return-to-work program," says Martha Bronson Posey, senior consultant and actuary with the actuarial & analytics group within Aon Global Risk Consulting. "Without a measure of efficiency and effectiveness, the health and productivity of the work force is suffering. It has been illustrated time and again that return-to-work programs keep business and premium costs down as well as benefit injured workers. It's a win-win for both the health care system and injured worker."
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